“We clearly need to keep inflation at bay…Too much inflation is not going to be conducive to growth.”

While these conclusions are obvious, the remarkable quality of these comments is that they come at a time when inflation remains a concern amongst developing and emerging economies and not the (relatively) stagnating ones of Europe and the United States.

Only time will tell whether comments like these will translate into any changes in monetary policy anytime soon. For example, Governor Mervyn King made it quite clear this week in his discussion of the Bank of England’s Inflation Report, that he has no intention of changing monetary policy anytime soon even with inflation continuing to print well above the Bank’s mandated target of 2%.